Compare change in sales price of homes in neighborhood and surrounding county
We want to see if there is a significant difference in the change in sales price of houses, per year, between a neighborhood and the surrounding county. Was wondering if I should do a time-series regression or other method.
I am not very fluent with time-series regressions, so if there is a way to do it by OLS or another method beside regression then that would be great.
Re: Compare change in sales price of homes in neighborhood and surrounding county
You could setup a longitudinal regression model if you have correlation of prices throughout time. You can set these up with R or SAS if you have these software.
Using a regression model you can add as many terms (including interaction) and test whether certain effects and interactions actually make a difference.
The thing about the regression model is that if you are going to use correlation, you need to use something decent that takes into account domain knowledge. If house prices are seasonal and not just based on say lag, then it means that the correlation model will be more complicated.
The first thing I would do if I were you, would be to figure out what kind of correlation exists and then use that to derive a covariance matrix structure for the generalized least squares and fit the data to that. Since I don't know about the intricacies of real estate markets and house prices, that is as far as I will go.